- The US SEC has delayed its decision on the Solana ETF filings from 21Shares and Bitwise.
- The regulator has opened formal proceedings to evaluate further the proposed rule changes tied to the SOL ETFs.
- The delay reflects broader uncertainty surrounding the approval process for digital asset ETFs in the United States.
The deadline for the SEC to rule on Solana ETF applications submitted by 21Shares and Bitwise has been postponed. This is yet another impediment to digital asset regulation. The next step involves formal proceedings, which means the review period can last indefinitely.
The SEC’s most recent statement indicates it is taking longer to review cryptocurrency funds, such as those for Bitcoin and Ethereum. According to the regulator, more time is required to analyze whether Solana ETFs align with the rules. The primary concern is ensuring filings follow the laws meant to protect the market.
With this step, the review of Solana ETF is aligned with other delayed reviews involving cryptocurrency funds.
Solana ETF Decisions Delayed As SEC Opens Review Proceedings
The SEC launched formal proceedings regarding the Bitwise and 21Shares’ Solana ETF filings. The hearings allow project officials to review the changes more closely. Bitwise applied for its Solana ETF on January 28 using the BZX Exchange platform.
The SEC issued the first delay notice after notifying the SEC of the application on March 11. Today, the Commission is making it clear that disapproval could be warranted, reflecting how it now approaches regulations. The choice is in accordance with Section 6(b)(5), which covers risks of fraud and price manipulation.
21Shares, which was among the first parties to submit an application, awaits the decision on its ETF. Despite managing many other ETF products, the firm continues to experience delays with its SOL ETF product. The SEC is still investigating whether these products comply with necessary laws.
Grayscale and Other Solana ETF Filings Also Face Postponements
This month, the SEC put off deciding about the Grayscale Solana ETF. Such a move is just one example of how many crypto-related fund proposals are delayed. Most of the digital asset ETFs the SEC considered have been allowed more time by the regulatory agency.
Grayscale’s Solana ETF is being reviewed, even as other funds are still in the same stalled position. All filings are subject to review using the current rules of exchange. It mainly focuses on investing in ways that protect investors and display market information.
The standstill covers spot ETFs designed for digital currencies and Solana ETFs. Hold-ups now occur in several types of filings, regardless of whether the applicant is new to ETFs. Consequently, all remaining audits are being continually examined.
Optimism Remains for Solana ETF Approval Despite Regulatory Slowdowns
Though the ETF has been pushed back several times, Bloomberg analysts still assign a high probability of approval for the Solana ETF. They anticipate that important achievements could be made by late next year. The interest in structured cryptocurrency investments is the reason behind these predictions.
Like Bitcoin ETFs, Litecoin ETFs may see the same results due to support from the SEC and CFTC. An approval is more likely if the product is a commodity. Because of the latest regulatory shifts, the odds of seeing XRP ETFs are very high.
At the same time, the chances for Dogecoin and Cardano ETFs are slightly lower. Even so, with new rules being introduced, these coins can still flourish. Talks among asset managers involve the Solana ETF, all the more because they are after US approvals.
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